Older homes have classic styling and lovely lines. There’s a certain pride in a home that has seen the past and doesn't bend to shallow new designs. However, there are benefits in purchasing a new build as well. Freshly built houses have less issues, even if they also have less personality.
What Are the Benefits of a New Build?
Lenders are making it easier all the time to buy a newly built home, rather than a home in an established neighborhood. That makes a new build look pretty appealing. The government put forth a 95% LTV deal that makes it simple for a buyer to buy a new property with almost no deposit. Those just starting out may gravitate towards a new build for the simple sake of ease of financing. New builds are usually also problem free. They have fresh, new appliances and paint. Sometimes you can even help to choose your options.
What Are the Downsides of a New Build?
New builds lack character and history. Your house will look just the same as everyone else on your street. The inside of your house will probably also lack architectural elements that add flavor and interest to your home.
What Happens When it is Time to Move?
New builds don't sell well if you're in a hurry to move on. It’s difficult to stand out to a prospective buyer when all of the homes in your neighborhood resemble one another. When every home looks like yours and they are priced similarly, it becomes difficult to stand out in the crowd. Your only chance will be to greatly reduce the price compared to the other houses for sale and hope that gives you an advantage. When pricing low is your only strategy, that puts the seller in an awkward position, and the buyer holds all the cards. New builds will always keep coming, as builders work hard to meet the demand. When it’s time to sell, there’s no advantage for a buyer to choose your bland house, when they could get a new, bland house for the same price.
Established neighborhoods are appealing to almost all buyers. Many people are willing to sacrifice the convenience and price of a new build for the feeling of comfort that comes from an established neighborhood. Large, lovely trees, schools, conveniences and a feeling of belonging are usually prevalent in historic areas and older neighborhoods. You can command more for a home that stands out, with mature foliage and a history of living. There’s no need to compete hard with your neighborhood comparables, as your house is likely to be, if not one of a kind, certainly unique.
If you are a young buyer who means to stay where you are for a number of years, a new build might be a good choice for you. If you know you might want to move sometime in the next few years, consider an older house where your resale values are likely to remain high!